BILL NUMBER: SB 42	CHAPTERED  10/10/99

	CHAPTER   603
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 5, 1999
	PASSED THE SENATE   SEPTEMBER 8, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   JULY 6, 1999
	AMENDED IN SENATE   MAY 28, 1999
	AMENDED IN SENATE   APRIL 29, 1999
	AMENDED IN SENATE   APRIL 15, 1999
	AMENDED IN SENATE   MARCH 10, 1999

INTRODUCED BY   Senator Johnson

                        DECEMBER 7, 1998

   An act to amend Section 62.2 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 42, Johnson.  Property taxes:  mobilehome parks.
   Existing property tax law requires the reassessment of real
property at fair market value upon a change in ownership and
specifies those transfers of real property that constitute a change
in ownership.  Existing law also excludes from classification as a
change in ownership any transfer, on or after January 1, 1989, of a
mobilehome park to a nonprofit corporation, stock cooperative
corporation, or other entity, including a governmental entity if,
within 18 months after this transfer the mobilehome park, or at least
51% of the individual rental spaces in that park, are then subject
to a subsequent transfer that is itself excluded by specified
statutory provisions from classification as a change in ownership.
Existing law extends this 18-month period to 36 months in the case of
a mobilehome park for which the first transfer occurred on or after
January 1, 1993.
   This bill would expand both of these exclusions to also apply in
the case in which the first transfer is made to a tenant-in-common
ownership group, and would, for purposes of applying the 36-month
time period for the subsequent transfer of a mobilehome park that was
first transferred on or after January 1, 1993, specify that the
execution of a purchase contract and the opening of an escrow for the
transfer of a rental space in the park is deemed to be within the
36-month time period if the escrow is opened before the end of that
36-month period and remains open for no more than 6 months after the
end of that period.
   Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
   This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
  This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 62.2 of the Revenue and Taxation Code is
amended to read:
   62.2.  (a) (1) Subject to paragraph (2), change in ownership shall
not include any transfer on or after January 1, 1989, of a
mobilehome park to a nonprofit corporation, stock cooperative
corporation, tenant-in-common ownership group, or any other entity,
including a governmental entity, if, within 18 months after the
transfer, the mobilehome park is transferred by that corporation or
other entity, including a governmental entity, to a nonprofit
corporation, stock cooperative corporation, or other entity formed by
the tenants of the mobilehome park in a transaction that is excluded
from change in ownership by subdivision (a) of Section 62.1, or at
least 51 percent of the mobilehome park rental spaces are transferred
to the individual tenants of those spaces in a transaction excluded
from change in ownership by subdivision (b) of Section 62.1.
   (2) (A) Any mobilehome park that was initially transferred on or
after January 1, 1993, to a nonprofit corporation, stock cooperative
corporation, tenant-in-common ownership group, or any other entity,
including a governmental entity, that is subsequently transferred
within 36 months of that initial transfer as provided in paragraph
(1), shall qualify for the exclusion from change in ownership
pursuant to this subdivision.  In applying the 36-month limit
specified in the preceding sentence to the subsequent transfer to an
individual tenant, as provided in paragraph (1), of a rental space in
a mobilehome park that was initially transferred on or after January
1, 1995, to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, the execution
of a purchase contract and the opening of a bona fide purchase escrow
with a licensed escrow agent shall be deemed to transfer the rental
space in compliance with that 36-month limit, provided that both of
the following conditions are met:
   (i) The escrow is opened prior to the expiration of the 36-month
time period.
   (ii) The escrow closes on a date no later than six months after
the end of the 36-month time period.
   (B) A mobilehome park located within a disaster area that was
initially transferred on or after October 1, 1991, and before October
31, 1991, to a nonprofit corporation, stock cooperative corporation,
or other entity, that is subsequently transferred within 76 months
of that initial transfer as provided in paragraph (1), shall qualify
for the exclusion from change in ownership pursuant to this
subdivision.  For purposes of the preceding sentence, "mobilehome
park located within a disaster area" means a mobilehome park that is
located in the County of Los Angeles in an area for which both of the
following apply:
   (i) The Governor, as a result of the January 17, 1994, Northridge
earthquake, has declared the area to be in a state of disaster and
certified the area's need for assistance.
   (ii) The President of the United States has, pursuant to federal
law, determined the area to be in a state of major disaster.
   The exclusion from change in ownership pursuant to this
subdivision of a mobilehome park located within a disaster area shall
be effective commencing with the 1995-96 fiscal year, and shall not
require any affected county to refund any amount of property tax
levied with respect to a mobilehome park for the period from October
1, 1991, to June 30, 1995, inclusive.
   (b) With respect to any transfer of any mobilehome park on or
after January 1, 1989, subject to this section, the individual
tenants who are renting at least a majority of the spaces in the
mobilehome park prior to the transfer to the entity formed by the
tenants for the acquisition of the park shall participate in the
transaction through the ownership of an aggregate of at least a
majority of voting stock of, or other ownership or membership
interest in, that entity.
   (c) This section shall not apply if any fees charged the
mobilehome park tenants in connection with either the first or second
transfer exceed 15 percent of the total consideration paid for the
mobilehome park in the first transfer, plus any accrued interest and
taxes.
   (d) If the assessor is notified in writing at the time the
transferee files the change in ownership statement that the
transferee intends to qualify the transfer under this section, the
mobilehome park shall not be reappraised pending satisfaction of the
relevant conditions set forth in this section for exclusion from
change in ownership.  If the transferee fails to satisfy those
conditions, the assessor shall reappraise the mobilehome park and
levy escape assessments or supplemental assessments, as appropriate.
For escape or supplemental assessments levied pursuant to the
preceding sentence with respect to a mobilehome park located within a
disaster area, both of the following conditions shall apply:
   (1) The limitations period shall be that period specified in
either subdivision (b) of Section 532 or subdivision (d) of Section
75.11, as applicable.
   (2) For purposes of applying the limitations periods specified in
paragraph (1), the expiration date of the 76-month period specified
in subdivision (a) shall be deemed to be the date upon which the
initial transfer of the mobilehome park was reported to the assessor.

  SEC. 2.  Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
